Staff Entertainment blog
This is a fully allowable expense as long as it is £150 per annum per employee.
It would be reasonable to assume that a business with one Director (and partner) would normally hold staff entertainment in the form of an office party and probably invite on average 2 other guests.
Although it is not specified in law just how many people can attend it is our view that an amount of £300 – £600 per annum for staff entertainment in total is reasonable if you are a sole director/shareholder company. For example, if your total turnover is around £50,000 then £300 is reasonable in our opinion, ie 2 guests. However, if your turnover is higher, then we think £600 (4 guests) is very reasonable.
Also these are claims for specific parties and company celebrations not regular monthly costs. You should keep a record of the overall cost of the party/event and keep a record of who attended
Keep receipts and make sure you don’t go over the £150 per person. If you do exceed this amount then the whole amount is taxable, not just the portion over £150!!
For more information please contact 0207 6143100
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